Finland has confirmed its commitment to increasing its investment in Indonesia by making available advanced energy technology for developing biomass renewable energy projects in Indonesia, the country’s Prime Minister says.
Finland’s Matti Vanhanen met with Coordinating Economic Minister Hatta Rajasa and Investment Coordinating Board chairman Gita Wirjawan in Jakarta on Tuesday to discuss the investment proposal.
The meeting was held during his three-day visit to Jakarta to explore trade and investment opportunities. He was accompanied by Finnish entrepreneurs.
Vanhanen said Finnish firms wished to develop biomass-derived energy production in Indonesia because renewable energy was one of the country’s largest industries, as well as telecommunications.
“Due to the much anticipated climate change, there is a growing need to use renewable energy, especially biomass as a source of alternative energy, both for fuels and to make electricity.
“We can share our experience and expertise on it,” he said, mentioning several Finnish companies that were willing to invest.
Biomass, a renewable energy source derived from biological material, can be used to generate electricity.
Gita said Finland was still in its preliminary stages of investing in renewable energy and that the cash amount of the investment had not been defined.
Gita said the government would also explore other investment opportunities apart from those in the energy sector.
Investments in renewable energy would accelerate the expansion of Finnish investments in Indonesia, Vanhanen said.
According to the latest data from the Coordinating Economic Ministry, 12 Finnish companies established 12 investment projects worth a combined US$22.5 million from 1990 to 2009.
Vanhanen said some Finnish investors had complained of difficulties in doing business in Indonesia.
“We have to harmonize standards so business sectors can play in different countries without facing too much difficulty,” he said.
However, he said the Indonesian government had improved its investment climate by confronting corruption and implementing transparency and good governance.
“Your government has made strong efforts to develop a better investment climate, which is very important for business,” he said, adding that more than 100 Finnish companies were doing business in Indonesia.
He said he believed a positive investment climate would also strengthen bilateral trade between the two countries.
The Indonesia-Finland trade volume reached $288.217 million in 2009, $61.179 million of which came from Indonesian exports and $227.037 million from imports.
Coordinating Economic Minister Hatta Rajasa said that from 2004 to 2008 the bilateral trade volume increased by 4 percent annually.
However, in 2009, at the height of the recent global financial crisis, trade fell to $288.217 million, a 38 percent decrease from $468.14 million in 2008.
“We should promote our investment opportunities, particularly in renewable energy,” he said, referring to Finland’s advanced technology for renewable energy sources. (ebf)
